Since announcing its IPO, Facebook has been dominating business headlines. But California real estate professionals will confirm that Facebook has also been dominating their own conversations as housing experts try to determine the effect that this historic trading event might have on the local California housing market. As one real estate agent told ABC News in a recent report, “There’s no way there’s not going to be an effect.”
The headquarters of Facebook is located in Menlo Park, meaning the neighboring Palo Alto area is expected to see the most action as a result of the company’s public debut. Already one of the area’s hottest neighborhoods, Palo Alto is home to younger money, a vibrant downtown and excellent schools.
According to AOL, real estate professionals are preparing for new Facebook millionaires to flood the Palo Alto real estate market with a buying fervor and – possibly – a taste for luxury, unlike their frontman Mark Zuckerburg who resides in a modest bungalow. They are calling it the “Facebook Effect.”
“‘Facebook effect’– the anticipated demand for high-end housing following the company’s May IPO. Since the beginning of the year, prices have climbed more than 10 percent in Palo Alto, Calif., where the company is headquartered.”
But inventory is still low, and experts are still unsure whether homeowners are waiting for the IPO to really take off. As a luxury real estate company based in Beverley Hills, Hurwitz James Company is also curious to see the results of the “Facebook Effect,” and we want to hear your opinion. Do you think homeowners are strategically waiting? Will Palo Alto become an infamous Facebook community?
Photo via FreeDigitalPhotos.net